| Thu 11 Jun 2009, 11:01 | | VKN/SLM - Vukile/Sanlam - Vukile To Acquire Sanlam Properties` Asset Management |
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SLM VKE
SLM VKE
VKN/SLM - Vukile/Sanlam - Vukile To Acquire Sanlam Properties` Asset Management
Business
Vukile Property Fund Limited Sanlam Limited
(Incorporated in the Republic (Incorporated in the Republic
of South Africa) of South Africa)
(Reg. no. 2002/027194/06) (Reg. no. 1959/001562/06)
JSE code: VKE NSX code: VKN JSE code: SLM NSX code: SLA
ISIN: ZAE000056370 ISIN: ZAE000070660
("Vukile") ("Sanlam")
VUKILE TO ACQUIRE SANLAM PROPERTIES` ASSET MANAGEMENT BUSINESS
Johannesburg, 11 June 2009 - Sanlam Investments and Vukile Property Fund today
announced that Vukile will acquire the Sanlam Properties asset management
business, as well as an option to purchase certain properties from Sanlam Life
valued at approximately R500 million.
The acquisition of Sanlam Properties asset management business is valued at
almost R332 million and makes strategic sense for both parties, as Sanlam is
downscaling its fixed property assets and Vukile is internalising the management
of its assets in line with international norms and global best practice. The
deal, which will be settled by the issue of 36.47 million new Vukile units at
910 cents per unit, will increase Sanlam`s shareholding in Vukile from 27.4
percent to 35.3 percent.
The acquisition is subject to the fulfilment of certain conditions precedent,
including but not limited to unitholder and regulatory approval.
Johan van der Merwe, CEO of Sanlam Investments, said that the group has already
reduced its fixed property asset portfolio by several billion over the past
eight years. "The Sanlam Group`s focus is on a combination of fixed and listed
property assets and it therefore makes sense for the entire function of property
asset management to move to Vukile - a business which specialises and wishes to
grow in this area."
Vukile chief executive Gerhard van Zyl added that the management of its assets,
previously done by Sanlam Properties, will now be undertaken through its in-
house resources.
"This shift is based on a worldwide trend for property companies to manage their
assets in-house. This, together with the proposed implementation in South Africa
of the Real Estate Investment Trust (REIT) structure, will give further impetus
to this approach. As for the proposed acquisition of properties from Sanlam
Life, this is in line with our strategic objective of building a quality
portfolio of properties with a strong contractual cash flow in order to give our
unitholders meaningful capital appreciation and sustainable distribution
growth," he said.
Following the conclusion of the transaction, Vukile will be responsible for the
asset management of its own property portfolio and it will also provide property
asset management services to Sanlam Life in respect of its entire property
portfolio.
As announced previously, Vukile and Sanlam Properties have agreed to extend the
existing asset management contract between the two parties for a maximum period
of six months up to 30 September 2009 so as to allow for sufficient time to
implement the transaction.
For more information:
SANLAM INVESTMENTS
Johan van der Merwe
Chief executive
+27 (0)21 950 2500
Johanvdm@sim.sanlam.com
SANLAM PROPERTIES
Banus van der Walt
Managing director
+27 (0)11 375 2902
Banus.vanderwalt@simprop.co.za
Julie Etheridge
Atmosphere Communications
+27 (0)21 469 1564
Mob: +27 (0)82 359 2461
Email: julie@atmosphere.co.za
VUKILE PROPERTY FUND
Gerhard van Zyl
Chief executive
+27 (0)11 288 1002
vukile@dpapr.com
About Sanlam Investments
Sanlam Investments is one of the three core clusters within the Sanlam group and
consists of 15 specialised investment and wealth management businesses offering
individual and institutional clients access to comprehensive expertise within
one company. Each business within the Sanlam Investments cluster functions as an
entrepreneurial entity with a shared focus on delivering leading performance and
exceptional client service. This is achieved by instilling passionate ownership
as an intrinsic value among the people working at Sanlam Investments.
It is based in Cape Town, with a strong presence in sub-Saharan Africa and
footprints in the United Kingdom and elsewhere in Europe, United States,
Australia and India. A diverse client base includes retirement funds,
corporations, financial institutions, individual investors, governments and
government agencies.
About Sanlam Properties
Sanlam Properties (SP), initially as a division of Sanlam Life and since 1989 as
an independent wholly-owned subsidiary, has played a leading role in the South
African property industry. The services of Sanlam Properties encapsulate all
the elements of property investments, from determining your ideal property
portfolio through securing, developing and refurbishing the property itself. It
includes inter alia portfolio management, developments, sales, benchmarking and
property listing and securitisation. Currently SP manages the portfolios of
Sanlam Life and Vukile with an estimated total value of more than R13 billion,
representing approximately 2.5 million square metres of lettable space and
approximately 200 buildings. SP was involved with the listing of property funds
Primegro, iFour, SA Retail, Acucap, Resilient, MICC and lastly Vukile.
About Vukile Property Fund
Vukile is a property fund which was listed on the JSE Limited on 24 June 2004
(JSE code: VKE) and on the Namibian Stock Exchange on 11 July 2007 (NSX code:
VKN). Its listing was promoted by Sanlam, which contributed a significant share
of Vukile`s start-up portfolio and at present still holds a 27% interest in the
company.
Vukile has a portfolio of 74 properties with a gross lettable area of 920 232
mSquared. The portfolio has a gross asset value in excess of R4.5 billion.
Issued by du Plessis Associates on behalf of Vukile Property Fund Limited and
Sanlam Limited.
dPA contact Helen McKane Tel : +27 11 728 4701, Fax: +27 11 728 2547, Mobile:
082 330 2034 or e-mail: vukile@dpapr.com
www.vukileprops.co.za
Date: 11/06/2009 11:01:01 Produced by the JSE SENS Department.
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